Question

Prepare a comparative common-size income statement for Jubilee Corporation. To an investor, how does 2017 compare with 2016? Explain your reasoning. E (Click the icon to view the comparative income statement.) Data Table Start by calculating the percentages. (Round the percentages to two decimal places, X.XX.) Jubilee Corporation Comparative Common-Size Income Statement Income Statement For the Years Ended December 31, 2017 and 2016 For the Years Ended December 31, 2017 and 2016 2017 2016 (amounts in thousands) Sales revenues 100.00 % 100.00 % 2016 2017 Sales revenues 429.000 Less: Cost of goods sold $4 494,208 $ 172,640 160,000 Gross profit Less: Cost of goods sold Gross profit Less: Operating expenses 321,568 $ 269,000 143,370 135.000 Operating income Less: Operating expenses Less: Interest expense Operating income 178,198 $ 134,000 7,500 6,000 Income before income taxes Less: Interest expense Income before income taxes 128,000 170,698 $ Enter any number in the edit fields and then click Check Answer. 33,990 24,000 Less: Income tax expense 1 part remaining 136,708 $ 104.000 Net income

Answer 1

% will calculate by dividing each expenses by sales.

Jubilee Corporation
Comparative Common-size income statement
For the years ended December 31, 2017 and 2016
	This year	last year
Sales	100.0%	100.0%
cost of goods sold	34.9%	37.3%
gross profit	65.1%	62.7%
Less: Operating expenses	29.0%	31.5%
Operating income	36.1%	31.2%
interest expense	1.5%	1.4%
Income before tax	34.5%	29.8%
Income tax expense	6.9%	5.6%
Net income	27.7%	24.2%

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